FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT – 03 November 2022

FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT – 03 November 2022

Technical Analysis

U.S. dollar eased slightly on Thursday

Asian shares slipped on Thursday. The Shanghai Composite is down 0.45% at 2,989.78. Overall, the Singapore MSCI is down 1.48% at 276.15. Over in Hong Kong, the Hang Seng Index is down 2.71% at 15,401.00. In Japan, the Nikkei 225 is down 0.87% at 27,400.00, while the Topix index is down 0.93% at 1918.00. South Korea’s Kospi is up 0.15% at 2,340.28. Australia S&P/ASX 200 down 1.84% at 6857.90.

Top News of the Day:

The U.S. dollar eased slightly on Thursday as investors digested the possibility that Federal Reserve may raise interest rates further than expected, while sterling edged higher ahead of the Bank of England policy meeting.

The Fed on Wednesday raised its benchmark funds rate by 75 basis points (bps) to 3.75-4% as widely expected. The dollar initially fell on hints in the Fed’s statement of smaller hikes ahead, but regained strength after Chair Jerome Powell said that the battle against inflation will require borrowing costs to rise further.

Market Summary as per 02/11/2022:

European equities Wednesday closing. The DAX futures contract in Germany traded down 0.61% at 13,256.74, CAC 40 futures down 0.81% at 6276.89 and the UK 100 futures contract in the U.K. down 0.58% at 7144.15.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed down 1.55% at 32147.77. The S&P 500 down 2.50% at 3759.68 and the Nasdaq 100 down 3.39% at 10906.34, NYSE closes down 1.98% at 14497.84.

Top Market News Today:

In the Forex market, GBPUSD up 0.18% at 1.1409. The USDJPY down 0.33% at 147.385. The USDCHF down 0.01% at 1.0026. EURUSD up 0.12% at 0.9826, EUR/GBP down 0.08% at 0.8612. The USD/CNY up 0.07% at 7.2941 at the time of writing.

In the Commodity market U.S. Gold futures up 0.09% at $1,636.70. Elsewhere, Silver futures up 0.61% at $19.316 per ounce, Platinum up 0.11% at $930.00 per ounce, and Palladium up 0.73% at $1864.50.

Crude Oil up on Thursday; Brent Crude Oil up 0.34% at $95.78 per barrel while U.S. West Texas Intermediate (CLc1) up 0.18% at $88.82.

In the Cryptocurrency Markets, Bitcoin at 20400.00 up 0.67%, Ethereum up 1.17% at 1555.50, Litecoin at 62.67 up 2.90%, at the time of writing.

Top Market Segment to Watch Out Today:

BlackRock (NYSE:BLK): BlackRock (NYSE:BLK), the world’s biggest asset manager, said on Thursday it would expand the number of clients eligible to choose how to vote at company annual meetings on everything from executive pay to climate strategy.

Economic News:

US: The Federal Reserve raised interest rates by three-quarters of a percentage point again on Wednesday and said its battle against inflation will require borrowing costs to rise further, yet signalled it may be nearing an inflection point in what has become the swiftest tightening of U.S. monetary policy in 40 years.

The double-sided message left open the possibility the U.S. central bank may raise rates in smaller increments in the future, ending its sequence of three-quarters-of-a-percentage-point hikes as soon as December in favour of more tempered increases of perhaps half a percentage point, while also leaving policymakers room to continue pushing rates higher if inflation doesn’t start to slow.

Fed Chair Jerome Powell, speaking in a news conference after the end of the central bank’s latest policy meeting, said he wanted no confusion on that point: Even if policymakers do scale back future increases, he said, they were still undecided about just how high rates would need to rise to curb inflation, and were determined to “stay the course until the job’s done.”

Euro Zone: The Bank of England looks on track to raise interest rates by three quarters of a percentage point to 3% later on Thursday, its biggest rate rise since 1989 as it battles the highest inflation in 40 years.

The BoE has faced political and financial market turmoil since its last rate rise on Sept. 22, a day before former Prime Minister Liz Truss’s government launched an unfunded 45 billion-pound ($52 billion) package of tax cuts.

The policy was aimed at staving off recession and spurring long-term growth – but instead it pushed sterling to a record low against the U.S. dollar, forced the BoE to prop up the bond market and led to Truss’s resignation.

Markets are now more stable, with British government borrowing costs broadly back to where they were before the upheaval. On Tuesday, the BoE was able to begin selling bonds from its 838-billion-pound quantitative easing stockpile.

However, fundamental problems for Britain’s economy remain. Consumer price inflation returned to a 40-year high of 10.1% in September and is likely to have risen further last month when regulated energy prices jumped, despite costly subsidies.

Top Economic Releases Today:

  1. U.S. Initial Jobless Claims today at 08:30 this time estimated 220K, previously which was 217K.
  2. 30 this time estimated -6.10%, previously which was 11.90%.
  3. U.K. BoE Interest Rate Decision (Nov) today at 08:00 this time estimated 3.00%, previously which was 2.25%.
  • JAPAN Services PMI (Oct) today at 20:30 previously which was 53.00.
  • EURO ZONE ECB President Lagarde Speaks today at 04:05.

TECHNICAL SUMMARY

GBPUSD TECHNICAL ANALYSIS

TRADE SUGGESTION- BUY AT 1.1389, TAKE PROFIT AT 1.1478 AND STOP LOSS AT 1.1336

EURUSD TECHNICAL ANALYSIS

TRADE SUGGESTION- SELL AT 0.9813, TAKE PROFIT AT 0.9782 AND STOP LOSS AT 0.9848

USDJPY TECHNICAL ANALYSIS

TRADE SUGGESTION- SELL AT 147.574, TAKE PROFIT AT 146.930 AND STOP LOSS AT 148.219

USDCHF TECHNICAL ANALYSIS

TRADE SUGGESTION- BUY AT 1.0048, TAKE PROFIT AT 1.0064 AND STOP LOSS AT 1.0032

HANG SENG TECHNICAL ANALYSIS

TRADE SUGGESTION- SELL AT 15372.00 TAKE PROFIT AT 14784.00 AND STOP LOSS AT 15830.00

WTI CRUDE OIL TECHNICAL ANALYSIS

TRADE SUGGESTION- BUY AT 88.89 TAKE PROFIT AT 90.56 AND STOP LOSS AT 87.93

GOLD TECHNICAL ANALYSIS

TRADE SUGGESTION- SELL AT 1629.60, TAKE PROFIT AT 1620.49 AND STOP AT 1638.87

BITCOIN TECHNICAL ANALYSIS

TRADE SUGGESTION- BUY AT 20254.00 TAKE PROFIT AT 20777.45 AND STOP AT 20011.39

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